The Securities and Exchange Commision wanted to add an additional charge to its complaint against Bank of America, saying the that the bank failed to disclose what it called “extraordinary losses” at Merril Lynch to stockholders prior to the vote to merge with the company. After a one hour hearing on the issue, the judge ruled against the SEC saying that splitting the focus of the trial between two charges would be confusing to the jury. The SEC can bring this new charge in a separate trial.
The trial, which focuses on the $3.6 billion paid out to Merril executives in bonuses prior to the merger will go ahead as scheduled on March 1.
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[...] Yesterday we updated you on the ongoing case filed by the SEC against Back of America stemming from the merger between Bank of America and Merril Lynch. The case stems from the failure of BofA to notify stockholders of bonuses paid to Merril executives shortly before the merger and the courts rejection of the $33 million dollar settlement. [...]
[...] court in New York has rejected the SEC’s attempt to broaden its case against B of [...]
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